Assessing Access to and Performance of FSC Housing Loans

This report is part of the Access Frontier series by Illana Melzer of Eighty20, which was commissioned by FinMark Trust. This report considers the performance of housing loans extended in South Africa during the first phase of the Financial Sector Charter (FSC) – from 1 January 2004 – 31 December 2008 and asks whether FSC housing loans performed better or worse than non-FSC housing loans (the traditional market).   With relevant data, the report asks a number of questions including the loan repayment behavior of low income borrowers. The report also compares the performance of low income borrowers with their higher income counterparts in the traditional mortgage market.